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Neil Kinnock urges Keir Starmer to introduce new wealth tax targeting multimillionaires across the United Kingdom

Neil Kinnock
Neil Kinnock

As Sir Keir Starmer marks his first year in Downing Street, the conversation around how Labour plans to fund its policies is heating up—fast.

With Chancellor Rachel Reeves under growing pressure to find billions in extra revenue, one familiar Labour figure is stepping into the spotlight with a bold suggestion.

Former Labour leader Lord Neil Kinnock says it’s time for the Government to stop dancing around the issue—and introduce a wealth tax on the UK’s richest households.


Kinnock’s Pitch for a Fairer Tax Plan

Appearing on Sky News this weekend, Kinnock laid out a plan that he believes could offer both a financial and moral win for the Government.

His proposal? A 2% tax on personal assets worth over £10 million—a levy that he says could generate £10–11 billion a year for the Treasury.

“You wouldn’t even need to touch assets below £6 or £7 million,” he explained.

“People’s homes would be safe. This would only apply to very large fortunes.”

For Kinnock, the tax is about more than just money—it’s about principle.

“The public is fed up,” he said.

“Every time there’s a crisis, the same people come out unscathed.

We need to show we’re serious about fairness.”


Why Labour’s Stuck—and How a Wealth Tax Could Shift That

Rachel Reeves has made it clear: she plans to stick to strict borrowing rules while also protecting “working people” from tax hikes.

But Kinnock warned that this self-imposed framework is making the Government look stagnant and stuck in its own limits.

He believes a wealth tax would not only raise funds but send a message—that Labour stands for economic equity and isn’t afraid to challenge a status quo that rewards wealth over work.

“This wouldn’t fix everything,” he admitted, “but it would secure resources and show the public that fairness matters.”


Tories Fire Back, Warning of Wealth Exodus

But not everyone is on board. Conservative shadow chancellor Sir Mel Stride slammed the proposal as “the worst thing to do,” warning that any move to tax the ultra-wealthy could backfire badly.

Stride pointed to the estimated 10,000 to 15,000 high net worth individuals who have reportedly left the UK in response to Labour’s tax policies.

“The taxes these people paid are equivalent to what 300,000 average earners would have to contribute,” he said.

“If we keep piling on, more will leave—and we’ll all be poorer for it.”

Instead, he argued that the UK should be cutting taxes on wealth creators, not adding new burdens, especially in a fragile economy.


Kinnock Warns Against a Far-Left Split

In the same interview, Lord Kinnock took a swipe at Jeremy Corbyn’s rumoured plans to form a breakaway party.

He jokingly suggested the group be called the “Farage Assistance Group”, claiming any left-wing splintering would only help the right-wing parties win power.

“It’s a gift to the Conservatives and to Farage,” Kinnock said.

“This kind of division only hurts the people Labour is supposed to fight for.”

He argued that voters on the left splitting their votes would only strengthen the hands of Kemi Badenoch’s Conservatives and Nigel Farage’s Reform UK.


A Country Tired of Inequality

Kinnock also pointed out the deeper issue at play: growing resentment over how the UK’s economic system protects the wealthy while ordinary people face rising bills and stagnant wages.

“Asset values have exploded in the last 20 years, while earned incomes have flatlined,” he said.

“A modest wealth tax is a signal that we care about fairness—and that we govern for everyone, not just the elite.”

Whether Reeves and Starmer will take that advice remains to be seen.

But with the Autumn Budget on the horizon and the public finances under stress, it’s clear the debate around wealth, fairness, and who pays their share is far from over.